Following periodic price-cuts for its Core 2 series desktop CPUs, Intel could be planning significant price-cuts for its Xeon series enterprise CPUs. This, according to Pacific Crest analyst Michael McConnell. The price-cuts are model-specific. According to McConnel, they are expected to range between 15 and 40% for quad-core Xeon processors and around 13% for dual-core models.

McConnel sees the price cuts as a response to excess inventories of Xeon processors, which is up 13% in Q4, worth up to US $3.85 billion. Another significant factor is AMD, which seems to be gaining market-share through HP, a major player with enterprise-computing. The new prices could be implemented by 18th of January.